Updated Aug 30, 2024
8/30/24
Senior Editor, Markets
Charleston, SC
Against a backdrop of solid demand, possible production cuts and potentially modest August storage injections, natural gas forward prices during the Aug. 1-8 trading period found room to move higher.
The U.S. natural gas rig count fell by one to 97 units for the week ended Friday (Aug. 9), while an increase in oil rigs sent the combined domestic tally up two units to 588, according to updated Enverus and Baker Hughes Co. (BKR) data.
Williams is plowing ahead to bring a large Southeast project online amid the “unprecedented pace” in natural gas demand growth. It is also turning attention to other burgeoning opportunities, including offshore in the Gulf of Mexico (GOM), executives said.
Against a backdrop of solid demand, possible production cuts and potentially modest August storage injections, natural gas forward prices during the Aug. 1-8 trading period found room to move higher.
A portion of the recently completed Mountain Valley Pipeline LLC (MVP) was shut for maintenance Tuesday, causing capacity cuts and driving Southeast regional natural gas prices higher.
Continued production curtailments and rising electric power sector demand are expected to drive Henry Hub natural gas prices higher through the end of 2024 and lead to production growth in 2025, according to updated federal forecasts.
The pummeling continued in natural gas futures, with technicals suggesting additional losses amid a dearth of fodder to nourish the bulls. However, after controlling the market for six weeks, bears could be losing steam, opening the door for the bulls to run.
The U.S. total combined oil and natural gas rig count of 586 for the week ending (Aug. 2) was down three rigs week/week, with gas-directed units accounting for the entire decline, according to the latest Enverus and Baker Hughes Co. data.
While advancing projects to sustain exploration and production companies vying for the coming boom in the LNG export market, DT Midstream Inc. (DTM) executives said the firm also would focus on supporting power demand from industrial users to underpin the natural gas market.
Natural gas prices mostly lost ground in August bidweek trading as rising production volumes and stout supplies in storage undercut the impact of forecasts for a sweltering end to the summer.